JOHNSON — A major credit rating agency has upgraded the Vermont Electric Co-op.

The Johnson-based co-op announced on Wednesday it’s been boosted to an A rating — meaning that while it is somewhat susceptible to economic risks, its overall creditworthiness is strong. The co-op previously had been rated at A-minus, and has seen steady improvement since it got a BBB- rating in 2007.

Co-op CEO Dave Hallquist said the stronger rating will keep the cost of financing low. He says it will help VEC diversify its power portfolio and keep costs low for members.

“This is great news for VEC’s members,” Hallquist said. “VEC’s board of directors and employees have worked hard during the past several years to improve our financial outlook.”

S&P cited a combination of cost management, moderate growth, and regulatory support as factors contributing to the co-op’s higher credit rating.

The S&P announcement follows news last week news that VEC would make $850,000 in payments to current and past members. The co-op said that announcement was “based on the principle that the economic benefits of the cooperative’s operation should be returned to its members or reinvested in the co-op.”